TIME OF SUPPLY
In the world of business, the time of supply plays a crucial role in tax compliance. This content delves into concepts like due date of invoices, date of payment, and the time of supply of goods under forward and reverse charge mechanisms. Learn about the importance of issuing tax invoices at the right time and the implications for different scenarios involving the movement of goods. Explore the nuances of supply transactions and the key considerations for businesses in managing their tax obligations effectively.
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Presentation Transcript
TIME OF SUPPLY CA VARSHA LUND
TIME OF SUPPLY SERVICES GOODS CA Varsha Lund
TIME OF SUPPLY OF GOODS CA Varsha Lund
BASIC CONCEPTS DUE DATE OF INVOICE Supply involving movement of goods Where the supply involves movement of goods , a registered person supplying taxable goods shall issue tax invoice , before or at the time of , removal of goods for supply to the recipient. Supply not involving movement of goods Where the supply does not involve movement of goods , a registered person supplying taxable goods shall issue tax invoice , before or at the time of delivery of goods or making available thereof to the recipient. CA Varsha Lund
BASIC CONCEPTS DATE OF PAYMENT Date on which entered in books of accounts OR Whichever is earlier Date as appearing in the bank statement CA Varsha Lund
TIME OF SUPPLY OF GOODS UNDER FORWARD CHARGE MECHANISM Provision Time of supply in case of supply of goods under forward charge mechanism will be earlier of date of invoice and due date of invoice CA Varsha Lund
TIME OF SUPPLY OF GOODS UNDER FORWARD CHARGE MECHANISM Date Of Invoice Whichever is earlier OR Due Date Of Invoice CA Varsha Lund
TIME OF SUPPLY OF GOODS UNDER REVERSE CHARGE MECHANISM Provision Time of supply in case of supply of goods under reverse charge mechanism will be earliest of Date of receipts of goods Date on which payment is entered in the books of accounts of the recipient or the date on which payment is debited in his bank account, whichever is earlier. Date immediately following 30 days from the date of issue of invoice or any other legal document in lieu of invoice by the supplier. CA Varsha Lund
TIME OF SUPPLY OF GOODS UNDER REVERSE CHARGE MECHANISM Date Of Receipt of goods OR Whichever is earlier Date of Payment OR 31st day from date of invoice CA Varsha Lund
VOUCHERS FOR GOODS Provision Single Purpose Voucher Time of supply in case of single purpose voucher i.e. case where supply is identifiable at the time of issue of voucher is the date of issue of voucher. General Purpose Voucher Time of supply in case of general purpose voucher which can be used for multiple purposes is the date of redemption of voucher. CA Varsha Lund
Vouchers for Goods Single Purpose Voucher General Purpose Voucher Date of redemption of voucher Date of issue of voucher CA Varsha Lund
CONTINUOUS SUPPLY OF GOODS Provision In the case of continuous supply of goods , where successive payments are involved , the invoice shall be issued before or at the time each such statement is issued or , as the case may be , each such payment is received. CA Varsha Lund
GOODS ON APPROVAL BASIS Provision Where the goods being sent or taken for approval for sale or return are removed before the supply takes place , the invoice shall be issued before or at the time of supply or six months from the date of removal, whichever is earlier. CA Varsha Lund
TIME OF SUPPLY OF SERVICES CA Varsha Lund
BASIC CONCEPTS DUE DATE OF INVOICE The tax invoice needs to be issued either before the provision of service or within 30 days (45 days in case of insurance/ banking companies/ financial institutions ) from the date of supply of service. CA Varsha Lund
BASIC CONCEPTS DATE OF PAYMENT Date on which entered in books of accounts OR Whichever is earlier Date as appearing in the bank statement CA Varsha Lund
TIME OF SUPPLY OF SERVICES UNDER FORWARD CHARGE MECHANISM Time of supply of services depends on whether the invoice is issued in time i.e. within thirty days from the date of provision of service. Time of supply will be determined in the following manner: Situation If the invoice is issued in time Rule Earlier of Date of invoice Date of receipt of payment Earlier of Date of provision of service Date of receipt of payment If the invoice is not issued in time CA Varsha Lund
TIME OF SUPPLY OF SERVICES UNDER FORWARD CHARGE MECHANISM If Invoice is issued in time. If Invoice is not issued in time. Date of Provision of service (DOC) Or Date of receipt of payment (DOP) Whichever is earlier Date of Invoice (DOI) Or Date of receipt of payment (DOP) Whichever is earlier CA Varsha Lund
TIME OF SUPPLY OF SERVICES UNDER REVERSE CHARGE MECHANISM Time of supply of services on which GST is payable on reverse charge basis will be Earlier of Date of payment Date immediately following 60 days since issue of invoice by the supplier. CA Varsha Lund
TIME OF SUPPLY OF SERVICES UNDER REVERSE CHARGE MECHANISM Date Of Payment Whichever is earlier OR 61st Day from Date Of Invoice CA Varsha Lund
VOUCHERS FOR SERVICES Provision Single Purpose Voucher Time of supply in case of single purpose voucher i.e. case where supply is identifiable at the time of issue of voucher is the date of issue of voucher. General Purpose Voucher Time of supply in case of general purpose voucher which can be used for multiple purposes is the date of redemption of voucher. CA Varsha Lund
Vouchers for Services Single Purpose Voucher General Purpose Voucher Date of redemption of voucher Date of issue of voucher CA Varsha Lund
RESIDUAL CASE If situation is not covered under any of the provisions above, ,the time of supply shall be Due date of filing of the periodical return In any other case, date on which GST is paid. CA Varsha Lund
INTEREST , LATE FEE ETC. Time of supply related to an addition in the value of supply by way of interest, late fee or penalty for delayed payment of any consideration shall be the date on which supplier receives such addition in value. CA Varsha Lund
